The Waller Group is proud to present the 100% occupied, 32- unit value-add property in Humble, TX. The property is available because current ownership is looking to reinvest proceeds.
The subject property in a quiet neighborhood and is located right across the street from Jack Fields Elementary School. Given the unit sizes and the location of the subject property, many of the current tenants are families. Four of the units at the property suffered from smoke damage due to a firework in 2021. Those 4 units have been updated (see photos below) and pre-leased at $1,305 with a $50 utility bundle included. These units give a good blueprint as to what can be done to the remaining units. Once exterior renovations are completed, the new owner should expect even higher rents per market comparables.
The seller purchased the property in 2002 and converted 1 unit into an office and 1/1. New ownership has the option to revert that change and lease out both 1/1 units or combine the units again into a 2/2. Also opportunity to add covered parking and a playground and/or barbecue area.
Current ownership is achieving $226,782 in annual NOI. New ownership, based upon area rent comps, can raise rents up to $404 / unit, which is a $0.38 / sqft bump. With this bump, new ownership can achieve an annual NOI of $302,651. Additionally, there is the opportunity to implement additional income fees through implementing a ratio utility billing system, lease violation fees, and parking fees. Another cost saving opportunity would be utilizing water conservation opportunities such as updates on faucets, showers, and low flow toilets, which can save up to 20% on water bills.
Current management is being compensated at 2.5% of EGI. Proforma financials were underwritten with a 5% management fee.